IMF now says mortgage-related losses to hit $1.4 trillion

WASHINGTON (MarketWatch) -- Global financial insitutions will write off $1.4 trillion in losses on U.S.-based mortgages and mortgage-backed securities, the International Monetary Fund said Tuesday. Five months ago, the IMF said losses would total $945 billion. In its annual Global Financial Stability Report, the IMF said the crisis is worsening and threatens to become "disorderly increasing the risk of a severe adverse feedback loop between the financial system and the broader economy." The major economies must respond with a "collective commmitment by authorities to address the challenges effectively." IMF Managing Director Dominique Strauss-Kahn said "the time for piecemeal solutions is over."

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